US Government to ban Chinese-made smart cars over security concerns
- In Reports
- 11:15 PM, Sep 23, 2024
- Myind Staff
Following the meeting between President Biden and Prime Minister Modi, the U.S. government announced its intention to seek a ban on the sale of smart vehicles equipped with Chinese technology.
The U.S. Commerce Department is set to announce proposed regulations that would prohibit the use of hardware and software from Chinese and Russian manufacturers in connected vehicles. This announcement is anticipated as early as Monday, according to sources familiar with the matter.
In recent months, the Commerce Department has engaged with industry experts to tackle security concerns associated with the latest generation of smart cars. The proposed regulations will prohibit the use and testing of Chinese and Russian technology in automated driving systems and vehicle communication systems. While the primary focus is on software, the rules will also encompass certain hardware components.
Many modern vehicles, whether gasoline or electric, are equipped with internet and cloud connectivity, making them vulnerable to hacking. The forthcoming restrictions arise from a cybersecurity investigation into Chinese vehicle software, initiated by President Joe Biden in March.
The Biden administration's main concern is to prevent China and Russia from hacking vehicles or tracking cars by intercepting communications through software developed by their domestic companies. Additionally, the proposed rules carry a protectionist aspect; since most new cars are connected via infotainment systems, Chinese car manufacturers could be prohibited from selling their vehicles in the U.S. if they utilize such connected technology.
In May, the administration imposed a 100 percent tariff on Chinese electric vehicles, citing concerns that the Chinese government is subsidising its auto industry and exporting excess capacity. This move comes as U.S. companies ramp up production of battery-powered cars.
The Commerce Department has declined to comment on the proposed rules. Lael Brainard, director of the White House’s National Economic Council, is scheduled to address efforts to “strengthen the U.S. auto industry” on Monday in Detroit. China has positioned itself as a leader in electric vehicles and smart car components, largely due to substantial government subsidies and support.
In the fourth quarter of last year, BYD Co. surpassed Tesla Inc. in sales of fully electric vehicles, while global automakers have increasingly relied on Chinese suppliers for technology essential to connected vehicles. In response, China maintains that it respects data privacy, the security of its foreign customers, and the principles of fair competition.
The new restrictions would be enforced by the Commerce Department to prevent Chinese companies from collecting data on U.S. drivers, particularly personal information, and transmitting it back to China. These rules would also hinder Chinese suppliers from expanding their presence in the U.S., allowing the American auto industry time to develop its own supply chain for connected vehicles. The Commerce proposal includes different phase-in periods for the various affected software and components. Officials aim to finalise the rules by January 2025, following a 30-day comment period on the proposal.
The proposed rules would regulate not only driver assistance and autonomous vehicle systems but also software that tracks vehicles using mapping and satellite location. Additionally, they would cover hardware for vehicle communication systems, including vehicle-to-everything (V2X) systems, which enable cars to communicate with road infrastructure, other equipped vehicles, and cloud services.
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